Month: February 2013

AHLI UNITED BANK B.S.C. REPORTS A RECORD PROFIT OF US$ 335.7 MILLION FOR 2012

Ahli United Bank B.S.C. (AUB) reported a net profit attributable to its equity shareholders of US$ 335.7 million for the year ended 31 December 2012. This represents a 8.1% increase over the 2011 result. The last quarter of 2012 contributed US$ 78.6 million to the overall increased result, as compared to US$ 70.3 million in Q4/2011.

Total operating income grew by 6.0% to US$ 892.8 million over 2011, driven by a 12.3% increase in net interest income, a 3.5% improvement in fee based income and a 8.5% increase in share of profit from associates and joint venture. Deployment of liquidity into diversified and risk acceptable sectors and assets resulted in the overall improvement in the net interest margin from 2.1% in 2011 to 2.2% in 2012. Key drivers of the increase in operating income were the 3.1% growth in net loans and advances together with a 17.2% growth in the non-trading investments portfolio over December 2011, funded by a 5.1% increase in customers’ deposits. Interest income includes a minor US$ 0.8 million exceptional gain from early repayment of subordinated debt. Ongoing adoption of a disciplined cost culture within the AUB Group further improved the cost income ratio to 29.9% (2011: 32.4%) and positively contributed to profitability.

AUB COMPLETES SALE OF ITS 29.4% STAKE IN AHLI BANK QATAR GENERATING AN EXCEPTIONAL PROFIT OF US$ 213 MILLION

Ahli United Bank BSC (AUB) today announced the completion of the sale of its 29.4% stake in Ahli Bank Qatar (ABQ) to the Qatar Foundation for Education, Science and Community Development at a price of QR 60 per share and for a total consideration of US$ 615.9 million, generating a net exceptional profit of US$ 212.9 million. This represents a valuation of 2.2 x book value and a 15.5 x Profit/Equity multiplier based on ABQ’s net profit for 2012.

As a result of the sale, AUB’s Technical and Management Services Agreement with ABQ has been modified to provide only selective advisory services for a maximum period of one year. In coordination with ABQ, AUB Directors have resigned their ABQ Board memberships in line with the cessation of AUB’s responsibilities for ABQ’s management or performance going forward.

The decision to sell our stake in ABQ was triggered by our inability due to legal factors to maintain our minority shareholding above the minimum levels required for ABQ to qualify as a strategic core investment with associated management and reputational exposure as per the AUB Group Investments Policy. This sale does not represent a reversal of our regional growth by investment and acquisition strategy and is solely driven by the specific legal constraints linked to this investment. AUB will continue to seek attractive opportunities to develop its banking franchise in the region and to enhance its shareholder value.